Question

In the year 2003, a person bought a new car for $18500. For each consecutive year after that, the value of the car depreciated by 12%. How much would the car be worth in the year 2005, to the nearest hundred dollars?​

Answer 1

$14300.00

Explanation:

100 - 12 = 88%

88% = 0.88

$18500 x 0.88² = $14326.40

To the nearest hundread:

$14326.40 = $14300.00

0.88² means to the power of 2 since it is 2 consecutive years I did to the power of 2. If it was 3 consecutive years then you do 0.88³.

Hope this helps!

Answer 2

Explanation:

t is the number of years since 2003.

f(t) = $18,500×0.88^t

t = 2 in 2005

f(2) = $18,500×0.88²≅ $14,300